Fancourt v Mercantile Credits Ltd

The High Court of Australia considered an appeal from the Supreme Court of New South Wales in *Fancourt v Mercantile Credits Ltd*. The dispute concerned the validity of a mortgage granted by Fancourt to Mercantile Credits Ltd, and whether Fancourt was entitled to have the mortgage set aside.

The central legal issues before the High Court were whether the mortgage was void for champerty, and whether Fancourt had established a case for equitable relief on the grounds of unconscionable conduct or undue influence. The Court also had to determine the proper approach to assessing the adequacy of consideration for the mortgage.

The High Court held that the mortgage was not void for champerty, as the arrangement did not involve the acquisition of property in litigation or an agreement to assist in litigation in return for a share of the proceeds. Regarding the equitable claims, the Court found that Fancourt had not demonstrated unconscionable conduct or undue influence. The Court emphasised that while adequacy of consideration is a factor in determining whether a transaction is unconscionable, it is not determinative, and the transaction must be viewed in its entirety. The Court also noted that the onus was on Fancourt to establish the grounds for equitable relief.

The appeal was dismissed.